Archives: Regulatory

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New York Legislature Extends Statute of Limitations for Martin Act Claims

Last week, Governor Cuomo signed into law a bill to amend the New York Civil Practice Law and Rules (“CPLR”) to extend the statute of limitations to six years for financial fraud claims brought under the Martin Act.  One of the strongest blue sky laws in the country, New York’s Martin Act gives wide latitude … Continue Reading

DOJ Settles RMBS Action Under FIRREA with Barclays for $2 Billion

On Thursday, March 29, Barclays Capital Inc. and several of its affiliates (together, Barclays)–as well as two former Barclays executives–agreed to settle a three-year Department of Justice (DOJ) investigation concerning Barclays’ marketing and sale of residential mortgage-backed securities (RMBS) between 2005 and 2007. The lawsuit was commenced by the United States Attorney’s Office for the … Continue Reading

JPMorgan Chase & Co. Settles for $264 Million After Allegedly Catering to Asia’s Elite Through Its “Sons & Daughters Program”

JPMorgan Chase & Co. (“JPMorgan”), the largest U.S. bank based on assets, has agreed to pay a $264 million fine to settle Foreign Corrupt Practices Act (“FCPA”) investigations into its preferential hiring program. The program, known internally as the Sons & Daughters Program, was created by investment bankers at its subsidiary, JPMorgan Securities Asia Pacific … Continue Reading

Agricultural Bank of China Agrees to $215 Million Penalty in Anti-Money Laundering Investigation

On November 4, the New York State Department of Financial Services (“DFS”) and the Agricultural Bank of China agreed to a Consent Order requiring the bank to pay a $215 million penalty and to install an independent monitor to review the bank’s program for compliance with anti-money laundering laws (“AML”), including the Bank Secrecy Act … Continue Reading

Insurance Coverage for SEC Investigations: Lynn Tilton’s Patriarch Partners Sue for Coverage and Highlight Traps to Avoid

With all the news surrounding the SEC’s headline-grabbing prosecution of Lynn Tilton and her firm, Patriarch Partners LLC, it is easy to miss the insurance coverage element of the case.  It is no secret that in recent years, and particularly following the enactment of the Dodd-Frank Act in 2010, the SEC has dedicated more resources … Continue Reading

IPO Fraud Investigation Marks Historic Turn for Chinese Regulatory Enforcement

On October 21, the China Securities Regulatory Commission (“CSRC”) opened an investigation into six Chinese companies for alleged fraud relating to initial public offerings (“IPOs”).  The six companies under investigation are (1) Longbao Ginseng & Antler Co. (“Longbao”), a biotechnology and pharmaceutical company; (2) Guangdong Guangzhou Daily Media Co., an advertising firm; (3) Ingenious Ene-Carbon … Continue Reading

Barclays Agrees to $100 Million Settlement in LIBOR Manipulation Investigation

On August 8, Barclays Bank PLC and Barclays Capital Inc. (collectively “Barclays”) reached a $100 million settlement to resolve a 44-state multistate investigation that exposed Barclays’ fraudulent and anticompetitive schemes to manipulate the London Interbank Offered Rate (“LIBOR”) from 2005 to 2009.  The investigation, led by Attorney General Eric T. Schneiderman of New York and … Continue Reading

Class Action Accuses Big Banks of Colluding to Drive Up Treasury Yields

A Connecticut-based trading firm filed a class action lawsuit against 25 large banks, alleging they used their “privileged position” as primary dealers to collude to artificially depress the auction prices of U.S. Treasury securities at the expense of the Treasury and secondary market participants.  According to the complaint, the plaintiff, Torus Capital, LLC, performed a … Continue Reading

Former Deutsche Bank Traders Indicted in LIBOR Probe

Two former Deutsche Bank traders accused of manipulating the London InterBank Offered Rate (“LIBOR”) were indicted by the Department of Justice (“DOJ”) on June 2, 2016. Dubbed “the world’s most important number,” LIBOR is a benchmark for global short-term interest rates that underpins trillions of dollars in mortgages and other debt. The case against the … Continue Reading

Government’s Focus on Eradicating Municipal Bond Fraud Is Evident After Two City Officials Are Criminally Charged

On April 14, the Department of Justice charged the supervisor of Ramapo, New York (the city’s top elected official), and the former executive director of the Ramapo Local Development Corp. with criminal securities fraud for allegedly defrauding thousands of municipal bond investors.  The charges relate to alleged misstatements and omissions made about Ramapo’s financial condition … Continue Reading

DOJ Investigates Treasury Market Manipulation by Dealer Banks

The Department of Justice (“DOJ”) recently announced that it has narrowed its scope of investigation into numerous financial institutions’ involvement in manipulating the US Treasury market.  The Fraud Division of the DOJ initiated the investigation in June 2015 when it requested documents from banks that are “primary dealers” of US Treasury bonds. A primary dealer … Continue Reading

Goldman Sachs Banker Embroiled in Massive Overseas Money Scandal

A top Goldman Sachs executive is in hot water, and the bank could be facing a congressional inquiry, following the discovery that $681 million tied to a state fund set up by Goldman made its way to the personal account of Malaysia’s prime minister. Tim Leissner, Goldman’s regional chairman for Southeast Asia, has reportedly taken … Continue Reading

EMV Credit Card Liability Shift: Merchants at Risk

If you have noticed that newly issued credit cards look different because of a small metallic chip on the front, there is a reason. According to EMVCo, the entity that oversees EMV technology and specifications, these small chips — called EMV microchips — hold payment data and provide codes specific to each purchase, adding another … Continue Reading